The news was first showed the world's largest online retailer, and the market's leading Kindle, may soon be challenged by the transition to rival Apple's new digital book series.
Amazon shares fell as much as 9 percent in regular session before closing 5.21 percent. E 'was reduced by 2.4 percent to $ 115.98 after hours.
"Thinking is the publisher of other people now want to re-price their services on Amazon.com, which can affect the whole of their business model," said TD Ameritrade Chief derivatives of War Joe Kinahan strategists.
The birth of many Apple iPad offers digital book market has launched a fledgling chain reaction, with publishers willing to protect their profits against expected Amazon to lower prices.
Sunday, warning customers of Amazon have bowed to pressure from publishers Macmillan, who insists on charging $ 12.99 to $ 14.99 for his books sold in bookstores Amazon Kindle e-reader, instead of the standard $ 9.99.
This price reflects the terms agreed upon by five of the six publishers to sell books on electronic media Apple's recently introduced iPad tablet, the New York Times.
Amazon has long-term selection and low prices advertised its main appeal to consumers, helping boost sales of the Amazon 42 percent in the most recent fourth quarter.
Book value is the key to promote the growth of the Kindle since its launch in 2007, but Amazon has put in contrast with the publishers. major publishers have complained that low prices on digital versions of the title it would cannibalize sales of more expensive hardcover edition.
Dominated the Amazon e-book has shot to ask for a lower price, that is, until the Apple appears on stage with the iPad and iBookstore week.
BGC Partners analyst Colin Gillis called concessions for Macmillan "is valid only for the first franchise to the Amazon Kindle e-book and other Apple products recently announced."
For its part, Amazon may have been set up for disappointment by promoting the success of the Kindle, without providing supporting data. Last month, analyst James McQuivey of Forrester said the stock could fall up to 20 percent in the Kindle the slightest hint of weakness.
Second, market observers were surprised at the original slope of the Amazon.
"Football is a technique to break down and it was only a matter of accumulation in the semi-retailers," said Michael James, senior trader at Wedbush Morgan in Los Angeles.
Meanwhile, shares of rival Amazon Barnes & Noble, the booksellers that Nook e-readers hit the market just before Christmas, has risen 17 percent in after-hours trade on Monday after investor Ronald Burkle sought to raise the threat.
SELL-OFF overdone?
Amazon does not disclose sales figures or profit for the Kindle, just saying that millions of people have purchased equipment.
Some analysts believe that Amazon sell securities at a loss of $ 9.99, and recovery through the sale of his readers. This means that the price is higher than the requirements of Macmillan will boost the profitability of the Amazon e-book, recorded at least two analysts believe the sell-off appears in the magnification.
"Although revenue growth Kindle may be affected, higher prices may improve profitability," UBS analyst Brian Pitz wrote, adding that Amazon leverage "critical" value should not Low prices.
"IPad still untested as a reading device, and we believe that there is room in the market for a dedicated ereader," he said, repeating a refrain from customers continuously for Amazon Kindle burner not regular readers.
JP Morgan's Imran Khan, meanwhile, wrote that if the price on e-books has increased to $ 14.99 from $ 9.99, volume reduction is expected to more than one third of the revenue decline.
"We do not expect a material impact on EPS," wrote
No comments:
Post a Comment